Why Bitcoin May Rally Soon Despite Negative Coinbase Premium: CryptoQuant

A key gauge of US investors' interest in bitcoin turned negative on Friday.

However, experts believe that this reversal will have a positive effect on the price of BTC.

Coinbase Bitcoin Premium records a negative value

According to a CryptoQuant analyst report, Coinbase Premium has recently registered a significant negative value. The Coinbase Premium Index is an indicator that measures the percentage difference between the price of bitcoin on Coinbase Pro and Binance.

Coinbase Pro is popular among crypto traders in the United States as well as many institutional investors, while Binance, the largest exchange, offers a more international audience. Thus, the index provides insight into the trading behavior of users on both platforms.

Historically, positive Coinbase Premium values ​​typically indicate strong buying pressure from US investors. On the other hand, the negative change in the index indicates a decrease in demand for bitcoin from US investors.

BTC remains stable as buying pressure on Binance Surges

According to the data, despite the decrease in interest from US investors, the price of Bitcoin remains stable, indicating that there is “significant buying pressure on Binance”.

A CryptoQuant analyst suggested that if the demand for digital assets increases in international markets, the price of Bitcoin will show a significant increase. The current market movement hints at what may happen soon.

“For Bitcoin's price to see a significant increase, buying pressure must expand beyond the US, led by FOMO (fear of missing out) in international markets. This move is very positive, the analyst said.

Bitcoin continues to rally following the US Fed's interest rate cut on Wednesday. The leading cryptocurrency briefly crossed $64,000 earlier today for the first time since last month.

The crypto asset briefly pulled back and is now trading at $62,800 at press time. If the uptrend continues, Bitcoin could retest its all-time high, and several bullish factors are heading its way. You can find more here.